Kraft Foods’s Peruvian arm is investing over PEN60m (US$20m) to expand production and storage facilities at its plant in Lima, Peru’s capital, and ramping up promotions, despite the current economic gloom.

“Peru is key to Kraft’s presence in Latin America,” said Julián Baluk, general manager of Kraft’s operations in the country.

He said the investment would consolidate Kraft as one of leading food producers in Peru, show confidence in the country, and answer demand from local and international markets.

One third of Kraft’s production in Peru is exported to other countries in Latin America and the Caribbean.

New facilities include the opening of a new production line, increasing production of wafers, biscuits and chocolates by 16% to satisfy export demand.

The company refused to reveal how much of the investment was being spent on production and how much on promotion, preferring to say both provincial promotions and new product launches would continue.